S.Amdt. 2702

This amendment proposes to add a new tax on the sale of electric vehicles and batteries. It aims to change the law by adding a new part to subchapter A of chapter 32 to impose specific taxes and direct the resulting revenue to the Highway Trust Fund.

Tax Details

• A tax of $150 is imposed on each battery module weighing more than 1,000 pounds that is sold by the importer, producer, or manufacturer and intended for use in an electric vehicle.
• A tax of $400 is imposed on each electric vehicle sold by the importer, producer, or manufacturer.

Key Definitions and Limitations

• Electric vehicle: Defined as a light-duty vehicle (weighing less than 8,500 pounds). This does not include hybrid vehicles that use both a rechargeable energy storage system and an internal combustion or heat engine using consumable fuel.
• Effective Date: These taxes apply to sales occurring after December 31, 2025.
• Termination: The tax ends for any electric vehicle or battery module sold after December 31, 2028.